Greece: 'Writing off all the debt won't work'

Siegfried Muresan, a member of the European Parliament discusses the economic crisis in Greece.

Even if they were to have zero debt, if you were to write off all the debt - it wouldn't work.

Siegfried Muresan, Member of the European Parliament and vice-chair of the Budgets Committee

Cash-strapped Greece is facing a critical referendum on Sunday on whether to accept a proposal to make the country's $355 billion national debt more manageable.

After six years of depression, spending cuts and job losses, the country is deciding on whether to accept a new bailout deal that will see more austerity in exchange for more loans.

Prime Minister Alexis Tsipras, who was elected in January on a promise to end years of austerity, has been calling for a "No" vote.

Siegfried Muresan, a member of the European Parliament and vice-chair of the Budget's Committee told Counting the Cost that the decision was "jeopardising" the lives of ordinary Greeks.

"Throughout the past five years Greece has recieved better and better conditions in terms of interest rates, in terms of debt repayment - a lot was done," he said.

However "political instability appeared 5-6 months ago with this new government taking office, and the 2.9 percent economic growth that was predicted was wiped out, and now we are predicting a zero percent economic growth for this year."